In these times of falling commodity prices, constrained debt and equity markets and high visibility cost reduction strategies, it is not surprising that a number of mining companies are considering placing their mining projects on care and maintenance.

Whilst the decision to put a mine on care and maintenance is primarily a business decision, executing it the right way will save considerable costs, time and effort in the long run and allow for a rapid ramp up and resumption of operations should a decision be made to resume operations.

In this publication, we set out the key areas that companies should focus on when taking a decision to put a mine on care and maintenance, namely:  

  • identifying and managing your ongoing environmental obligations with respect to the mine-site;
  • dealing with your employees and consultants;
  • auditing and complying with ongoing health and safety obligations;
  • communicating with shareholders and strategic investors;
  • notifying, consulting and managing your financiers and insurers;
  • maintaining and retaining your mining tenements and other titles;
  • managing your ongoing contractual obligations and communications with counter-parties;
  • providing your directors with sufficient and appropriate information and advice in order for them to make an informed decision; and
  • notifying and consulting all of your other stakeholders.

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